Upload
tranhanh
View
214
Download
1
Embed Size (px)
Citation preview
INDUSTRY STRUCTURE AND DEVELOPMENTS
Gelatin is a colorless, flavorless, semi-transparent, and brittle collagen product. It is a protein food product
generallyderivedfromtheseveralanimalsources.Itisusedinseveralapplicationsasastabilizer,thickener,and
gellingagent.Gelatinisnormallygradedintocategoriesasperitsqualityandstrength,andtheunitisnamedas
'bloom.'Agreaterbloomnumbersignifiesahighqualityofgelatin.Thecolorofthegelatinproductisdependedon
therawmaterialtype.Thesuperiorqualityofgelatinarehighmolecularweightcompoundsandwithbettergel
strength.
TheglobalgelatinmarketisexpectedtogrowatasteadyrateandpostaCAGRofmorethan6%andisprojectedto
exceed480thousandmetrictonsby2022.Theincreasingdemandforgelatinfromcosmeticsandpersonalcare
applicationswilldrivethegrowthprospectsfortheglobalgelatinmarketuntiltheendof2021.Thecosmeticand
personalcare industry increasinglyusesgelatinasastabilizing,viscositycontrolling,andcleansingagent.The
presenceofproteincontentbooststhepreferencefortheadditionofgelatininvariouspersonalcareapplications
suchasfacecreams,shampoos,bodylotions,lipsticks,facemasks,andsunscreens.Duetothehighdisposable
incomeofthepeople,theconsumptionofcosmeticproductsishighinvariousdevelopedaswellasdeveloping
countriessuchastheUS,theUK,Australia,Canada,France,China,India,SaudiArabia,andGermany,whichwill
consequentlyfuelmarketgrowth.
Accordingtothemarketresearchandanalysis,Europewasthelargestrevenuecontributortothegelatinmarket
during2016.Thisismainlyduetothepresenceofdominantmanufacturersintheregion.Withtheincreasing
numberofapplicationsinfoodandbeverageproducts,thesalesofgelatinislikelytoincreaseinEuropeandthis
regionwillbethemajorrevenuecontributortothemarketinthecomingyearsaswell.
During2016,thepigskinsegmentdominatedthegelatinmarketandisexpectedtowitnesssignificantgrowth
duringtheestimatedperiodaswell.Duetofactorssuchasthesuperiorqualityofgelatin,theshortproduction
process,theneedforlessamountofwaterinpre-treatmentandextraction,thereductioninwaterwastageduring
processing,andaless-timeconsumingpre-treatmentprocess,thecomingyearswilwitnessasignificantincreasein
thedemandforgelatinderivedfrompigskin.
Gelatin
Gelatinisderivedfromcollagenwhichisobtainedfromvariousanimalsourcesincludingpigskin,bovinehides,
cattlebonesandfish.Thistypeofanimalcollagenhelpstoswallowtabletsandcapsuleseasily.Gelatinisaformof
proteinderivedfromanimalsources.Thisclearandtastelessproteinisobtainedfromthecollagenfoundinthe
bones,connectivetissue,andskinofpigs,cattleandotheranimals.Inoldtimes,gelatinwasusedasabiological
adhesive.Butwithadvancingtimes,theuseofgelatinhaschangedanddiversified.Apart fromadhesiveness,
gelatinpossessesmanyphysical,chemicalandfunctionalpropertieslikecrystallizationcontrol,waterbinding,film
forming, thickening and emulsifying properties. Thus, it has found a large area of application in the food,
pharmaceutical,neutraceutical,photographic,cosmeticandpackagingindustries.
MANAGEMENT DISCUSSION AND ANALYSIS
(Annexure-1 to the Director's Report )
st31 Annual Report 2016-17
019
STERLING BIOTECH LIMITED
Besidesthese,gelatinhasalsoestablisheditsutilizationincombatingosteoporosisandarthritis.Thewidening
scopeofapplicationhasprovidedalucrativeplatformforaswiftgrowthoftheglobalgelatinmarketwhichis
expectedtoreachavalueofaroundUS$4.08billionby2024.Theincreasingapplicationoftheproductinfood&
beverageandpharmaceuticalapplicationsonaccountofexhibitingexcellentstabilizingcharacteristicsandgood
bindingfeaturesisexpectedtoremainafavorablefactorforgrowthovertheforecastperiod.
Theproductismajorlyusedasagellingagentinnumerousapplicationsincludingfood&beverage,nutraceuticals,
healthcare,personalcare,andphotography.Increasingdemandforconveniencefoodsinemergingeconomies
includingChina,India,andMiddleEastcountriesisexpectedtopromotetheusageoftheproductasafunctional
ingredientinconfectionaries.
Gelatinisalsousedintheproductionofabroadrangeofpharmaceuticalsincludingwounddressings,bloodvolume
substitutes,andhomeostaticsponges.DevelopmentofthepharmaceuticalindustryintheU.S.andCanadainlight
ofincreasingexpenditureforincorporationoflatesttechnologiesisexpectedtohaveasubstantialimpact.
Overthepastfewyears,polysaccharidesarebeingincreasinglyusedasanimportantconstituentinhealthcareand
food& beverage applications on account of providing excellent hydrolyzing enzymatic properties. Therefore,
industrypresenceofpolysaccharideisexpectedtoposeasubstitutionalthreattogelatinmarketoverthenexteight
years.
Increasingawarenesstowardsmicroencapsulationinthebroadrangeofapplicationsincludingfood&beverage
andhealthcareisexpectedtoopennewmarketsoverthenexteightyears.
Application Insights
Thefoodandbeveragesegmentdominatedthemarketduring2016andislikelytocontinueitsdominanceinthe
comingyearsaswell.Theincreasingdemandforfunctionalfoodandbeverageproductssuchasconfectionery,
marshmallows, desserts, bakery products, dairy products, pet foods,meat packaging, frosted cereals, cream
cheese, cupcakes, candies, pudding, juices, and beverages will be the major factor fueling market growth.
Additionally,theuseofgelatininpetfoodsandotherproductssuchascakes,cottagecheese,icecreams,whipped
creams,andcheesespreadwillalsopropelthegrowthofthemarketinthissegment.
Raw Material Insights
Bovinehide-basedproductsareprojectedtoforeseevolumegrowthat4.9%CAGRfrom2016to2024.Easywater
absorptionandsignificantproteincontentareexpectedtopromotetheusageoftheaforementionedrawmaterial
overtheprojectedperiod.The increasingpopularityofhalal foods infood&beverage industryofMiddleEast
countriesisexpectedtopromotetheusageofcattlebonesasrawmaterialstoproducegelatinovertheforecast
period.
Fishskin,horsehair,andsheepcoveringareotherrawmaterialswhichareusedfortheproductionofgelatin.
TechnologicaladvancementforthedevelopmentoffishgelatininChinaisexpectedtoopennewmarketsoverthe
nexteightyears.
Function Insights
Theincreasingimportanceofemulsifyingpropertyinfood&beverageindustryofmajormarketsofGermany,UK,
andFranceisexpectedtopromotetheusageofgelatinasagellingagentoverthenexteightyears.Themarketis
projectedtowitnessgrowthataCAGRof5.3%from2016to2024,intermsofrevenue.
st31 Annual Report 2016-17
020
STERLING BIOTECH LIMITED
ApplicationgrowthofpharmaceuticalproductsincludingtabletsandcapsulesinemergingmarketsofChinaand
Indiaowingregulatorysupportintendedforpromotinginvestmentsinthehealthcaresectorisexpectedtoincrease
thedemandforstabilizingagent.Gelatinalsofindsuseasthickeningagentsinthephotographicindustry.
Regional Insights
Europerepresentsthelargestmarketworldwide,accountingfor41.2%oftheglobalrevenuein2015.Increasing
awarenesstowardsincorporationofnutritionalingredientsinfood&beverageindustry,particularlyindeveloped
economiesincludingGermany,UK,andFrance,isexpectedtohaveahighimpactonthemarket.Also,thepresence
ofarobustpharmaceuticalmanufacturingbaseinGermany,UKandBelgiumissupposedtoremainafavorable
factor.
AsiaPacificisforcasttospearheadfuturegrowthwiththefastestCAGRof5.0%ledbyfactorssuchasgrowing
population and robust food production where gelatin is used widely as gelling agent, growing spending on
appearancemaintenanceproductsamongtheexpandingbaseofaffluentmiddleclasspopulationandtheresulting
increase in theuseofgelatin incosmetic formulations,andraisingprevalenceofosteoarthritisandaparallel
increaseintheconsumptiongelatinsuppliments.
Competitive Insights
Key industry participants include PB Gelatin, Nikita AG, Rousselot, Capsugel Inc. and Sterling. New product
developmentandtheestablishmentofstrategicpartnershipswithbuyersareexpectedtoremaincriticalsuccess
factorsoverthenexteightyears.Globalpharmaceuticalmarketareinthemidstofmajordiscontinuities.While
growthindevelopedmarketswillslowdown,emergingmarketswillbecomeincreasinglyimportantinthecoming
decade.TheIndianPharmaceuticalmarket,alongwithmarketsofChina,BrazilandRussia,willspearheadgrowth
withinthesemarkets.
The Indianpharmaceuticalsmarkethascharacteristics thatmake itunique.First,brandedgenericsdominate,
makingupfor70to80percentoftheretailmarket.Second,localplayershaveenjoyedadominantpositiondriven
by formulationdevelopment capabilities andearly investments. Third, price levels are low,drivenby intense
competition.
TheIndianpharmaceuticalsmarketisthethirdlargestintermsofvolumeandthirteenthlargestintermsofvalue.
IndiaisthelargestproviderofgenericdrugsgloballywiththeIndiangenericsaccountingfor20percentofglobal
exportsintermsofvolume.Indiaenjoysanimportantpositionintheglobalpharmaceuticalssector.
TheIndianpharmaindustry,whichisexpectedtogrowover15percentperannumbetween2015and2020,will
outperformtheglobalpharmaindustry,whichissettogrowatanannualrateof5percentbetweenthesame
period. The market is expected to grow to US$ 55 billion by 2020, thereby emerging as the sixth largest
pharmaceutical market globally by absolute size. Branded generics dominate the pharmaceuticals market,
constitutingnearly80percentofthemarketshare(intermsofrevenues).
India'spharmaceuticalexportsstoodatUS$16.4billionin2016-17andareexpectedtogrowby30percentover
thenextthreeyearstoreachUS$20billionby2020.
st31 Annual Report 2016-17
021
STERLING BIOTECH LIMITED
OPPORTUNITIES AND THREATS
l Opportunities:
Asthehydrolyzedformofgelatin,collagenisahighlypurifiedproteinthatcanbeeasilyabsorbedinthe
humanbody.Itisusedasaningredientfornutritionalsupplementssuchasproteinbarsanddrinks,weight
loss,beautyproducts,andoverallbodyhealth.Thisproductiseasilysolubleinhotandcoldliquids.Itisalso
perfectwhere traditionalgellingability isnot required.Ourgelatinproductshavenumerousandvaried
applicationsintheFood,HealthandNutritionalindustries.Gelatinisanaturalandfat-freeingredientthatis
bothhighinproteinandvirtuallycaloriefree.Itisinvaluableintheprocessingoftheseandmanyotherhealth
products.
ThechangeintheworldtopographyespeciallyintheEuropeancountriesleadingtoincreaseintheageing
populationisexpectedtoensureastablegrowthintheglobaldemandofgelatinoverthecomingyears.
FurthertheincreasinguseofgelatininPharmaceutical,Neutraceuticalandcosmeticproductswouldaddto
thisstablegrowthinglobaldemand.Thefoodandbeverageindustrycontinuoustorepresentsoneofthe
largestconsumerofgelatin.
Thegeneralgrowthinhealthconcernsandtheincreaseinthestandardoflivingofthepeopleleadingto
greaterdisposableincomehasincreasedtheuseofdietarysupplementandtherebyincreasestheusageof
gelatinbasedproducts.
Asregardsthealternativesthatmeetsomeofthegelatincharacteristics,noneisyetavailablethatmatchesall
thefunctionssuchasgelling,binding,thickening,stabilizing,filmforming,andaeratingproperties.Thus,no
comparablesubstitutehasbeendevelopedtilldate.
Thegelatinhasuniquecharacteristicsthatmakeitespeciallyusefulasafilm-formingagentforencapsulation
ofliquidsandpowders.Gelatincapsulesoffertheuniqueadvantagesofdosageaccuracy,easeofswallowing,
andappearance. Inadditiontohardandsoftcapsules,gelatin'suniquephysicalpropertiesallowforthe
coatingandbindingofthedrycomponentsintablets.Havingnotoxicity,andtheabilitytobeeasilyabsorbed
bythebody,gelatinisanidealsubstancetouseinmedicinalandnutritionalpreparations.Gelatinisthe
excipientofchoicetoprovideaneffectivedeliverysystem.
Asarichsourceofprotein,Gelatinfindsapplicationinnumerousend-usesectorsincludingpharmaceuticals,
foodandbeverage,photographic supplies, cosmetics,explosives,electroplating,dyes,papermakingand
printing,amongothers.Risingstandardsofliving,easieraccesstohealthcareservices,increaseindisposable
incomesandrapidlyagingworldpopulation representkey factorsdrivinggrowth indemand forgelatin.
Improving lifestyles in developing economies of India and China are also expected to promotemarket
expansion. Lack of availability of competitive substitutes in themarketmakes gelatin one of themost
indispensablefeedstockinvariousend-useindustries.
Consumption in thepharmaceutical industry remainshighdrivenbyrapidlyageingdemographics, rising
incidenceof chronicand lifestyle relateddiseases,andgrowinghealthconsciousness.Growing focuson
preventivehealthcareamidstmountinghealthcarecostsrepresentsanotherimportantgrowthdriver.Rising
popularity of nutraceuticals is also expected to benefit gelatin consumption in the near term. Gelatin
encapsulatedmedicinesandgelatin-baseddietaryandhealthsupplementsareexpectedtowitnessstrong
demandinthecomingyears.
st31 Annual Report 2016-17
022
STERLING BIOTECH LIMITED
AsstatedbythenewmarketresearchreportonGelatin,Europerepresentsthelargestmarketworldwide,
followedbyAsia-Pacific.Asia-PacificisalsoforecasttospearheadgrowthwiththefastestCAGRof4.9%over
the analysis period. Growing GDP, rising standards of living, increasing disposable income, expanding
healthcareaccessandrobustgelatindemandfromend-useindustriesrepresentkeyfactorsdrivinggrowthin
theregion.
Demand is driven by theworld's aging population, increasing awareness of health issues, and end-use
industriesincludingpharmaceuticals,nutraceuticals,andfoodandbeverages.Demandinemergingmarkets
suchasIndiaandChinawillalsofuelexpansion,alongwithrisingstandardsoflivingandtheavailabilityof
vegetariangelatinoptions.Obstaclestoindustrygrowthincludeconsumerconcernsregardingthepotential
healththreatinusingproductsderivedfromanimalbodyparts.(GlobalIndustryAnalysts).
Whereasthepharmaindustrymeetsaround70%oftheCountry'sdemandforbulkdrugs,drugintermediates,
pharmaceuticalformulations,chemicals,tablets,capsules,orals&injectable.Thedomesticpharmaceutical
marketisexpectedtoregisterastrongdoubledigitgrowthof15%onthebackofincreasingsalesofgeneric
medicines,continuedgrowthinchronictherapiesandagreaterpenetrationinruralmarkets.
l Threats:
Despitethebrightoutlook,consumerconcernsrelatedtothesafetyandsocialaspectsofusingproducts
derivedfromanimalbodypartscontinuetohauntindustryprospects.Theindustry,overtheyears,hasborne
thebruntoftightenedregulationsandlegislativeridersgoverningtheuseofgelatininsupplements.
InspiteofOIEclearanceforIndiaas"Negligiblerisk"countryforBovineSpongiformEncephalopathy(BSE),
theUSFDArefusingtoacknowledgethisratingandplaceIndiainthe'Undetermined'categorywhichcould
affectexport.SalesandrealizationofDCPsufferedaminorsetback.
Environmentalregulationcontinuetobecomemorestricterandstrengthenonaccountofwhichtherewould
ariseaneedforlargercapitaloutlayforachievingrevisedstandardaswellashigheroperatingcostforthe
treatment.RawMaterialnamelycrushedbonesavailabilityhasbeenshortandtherebypricesareathistorical
highs.
CentralGovernmenthasalsoformeda14membercommitteetopursuevegetablegradecapsulesleadingto
uncertaintyforpharmagradegelatinmanufacturedfrombones.
PERFORMANCE
The Company is engaged into manufacturing of Gelatin from animal bones. Gelatin is primarily used in
pharmaceuticals industry formaking capsule caps and in food industry. Company has developedworld-class
technologyforgelatinbyestablishingstate-of-the-artfacilities.TheCompany'splantslocatedatKarakhadiand
Ootyemploythelatestinnovationsintechnologyfortheproductionofgelatin.
TheCompanyproducespharmaceuticalproductmeetingglobalquality standards, viz. Lovastatin (Cholesterol
lowering drug) and Oncology / Other Pharmaceutical products. Sterling, as of today, has highest Lovastatin
manufacturingcapacitywithrequiredregulatoryapprovals.ThefermentationfacilityofMasarplantisoneofthe
largestfermentationfacilitiesinIndia.
Thecompanyhas increased its focusonLovastatinandotherCholesterol loweringdrugsaswellasOncology
productswhichhaveaverybrightfutureinDomestic&InternationalMarkets.
st31 Annual Report 2016-17
023
STERLING BIOTECH LIMITED
BriefoverviewofPharmaandOncologyproductsmanufacturedbytheCompanyisasunder:
Anticancer Products :
l DOXORubicinisananti-cancerchemotherapydrugandisclassifiedasananthracyclineantibiotic.
l IDARUBICINisananti-cancer(antineoplasticorcytotoxic)chemotherapydrug.Thismedicationisclassifiedas
ananthracylineantitumorantibiotic.
l Daunorubicinisusedtotreatacutelymphocyticandmyelocyticleukemias.
l IMATINIBisadrugusedtotreatcertaincancers.
l EPIRubicinisananthracyclinedrugusedforchemotherapy.
Other Products :
l Lovastatinisacholesterol-loweringagentthatbelongstotheclassofmedicationscalledstatins
l DACARBAZINEisusedtotreatHodgkindiseaseandmalignantmelanoma
l TemozolamideisanoralalkylatingagentusedforthetreatmentofGradeIVastrocytoma
l Simvastatinisalipidloweringdrugusedtodecreaseheartproblemsinthoseatahighrisk
OUTLOOK
AlongwithproductionofBonegelatin,thecompanycontinuestofocusitsattentiononPharmaceuticalproducts,
OncologyproductsandHydrolisedProteinsforitsfuturegrowth. TheResearchandDevelopmentactivityofthe
Companyintendstohavefocusedandcontinuousinnovationtosecureasoundfuture.Expansionoftheproduct
portfolioandcostcontrolthroughlongtermcontractswithsuppliersandtighteningofexpensescontinuesfor
improvedmargins.
AllrequiredcertificationsintermsofqualityobtainedbytheCompanygivesthecompanybetterpositioninthe
International&DomesticMarket.Withexpectedfuturegrowthinpharmasectorwiththeuseofgelatinasraw
materialformanufactureofcapsules,demandconstraintwillnotbetherefortheCompanyincomingyears.
RISKS AND CONCERNS
Statements in the Management's Discussion and Analysis describing the Company's projections, estimates,
expectationsorpredictionsmaybe"forwardlookingpredictions"withinthemeaningofapplicablesecuritieslaws
andregulations.Actualresultsmaydifferfromsuchestimates,projections,etc.,whetherexpressedorimplied.
FactorswhichwouldmakeasignificantdifferencetotheCompany'soperationsincludeachievementofbetter
qualityandgoodmarketpriceindomesticandoverseasmarket,changesinGovernmentregulationsandtaxlaws,
economicconditionsaffectingdemand/suppliesandotherenvironmentalfactorsoverwhichtheCompanydoes
nothaveanycontrol.Stringentregulation/normsrequiredtobefollowedbyslaughterhousesformeatexportsto
EUcountries,increaseincostofpower&fuelduetoincreaseinthepriceoffurnaceoil&increaseinotherfixed/
semivariablecostduetooverallinflationarypressurearealsothematterofconcerns.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
Thecompanyhasadequateinternalcontrolsystemstoensurethatallassetsaresafeguardedandprotectedagainst
lossfromunauthorizeduseordispositionandthetransactionsareauthorized,recordedandreportedcorrectly.
Theinternalcontrolisdesignedtoensurethatthefinancialandotherrecordsarereliableforpreparingfinancial
statements.TheCompanyhasinplacedocumentedprocedurescoveringallfinancialandoperationalfunctions
commensuratewithitssizeandcomplexity.TheCompanyhasalsotakenrequiredmeasurestocounterthedemand
issueviz.improvementinmarketingsetup,tighteningofcreditcontrol,Diversificationofproducts&costcontrol
measures.
st31 Annual Report 2016-17
024
STERLING BIOTECH LIMITED
RESEARCH & DEVELOPMENT
R&DfacilityattheplantisequippedwithallmodernanalyticalandprocessequipmentincludingHPLCs,GC,GCMS,
IR,Spectrophotometer,Autoclaveetc.andisunderstrictcontrols&restrictedentry
SterlingBiotechundertakesresearch&developmentactivitiesat its in-houseR&Dcenterswhichlookafterat
specificareasofimprovementofproductquality,processimprovements,costeffectivenessandeliminationof
wasteinthesystems.ThecompanyalsocarriesoutR&Dworkonfermentationproducts,APIandintermediates.
ThecompanyhasinvestedsignificantamountofresourcesonResearch&Developmentandhassetupastate-of-
the-artR&Dfacilityinthenameof"SterlingBiotechResearchCentre"atitsMasarplantinVadodara,whichis
engagedindevelopmentofcomplexandnichegenericactivesubstancesforleadinggenericplayersfromEurope
andotherregulatedmarket.Forcompany,theR&Disanintegralpartofprocessandproductdevelopment.
TheCompanyalsohasamicrobiologylaboratorywhichisequippedwithallfacilitytohandleculturemaintenance,
inoculumspreparationandpropagation,in-processbatchanalysis,shakeflasktrials.
QUALITY CERTIFICATIONS
Thecompanycontinuoustohavethefollowingqualitycertificationsinaccordancewithitspolicytoachieveand
maintainthehigheststandardsofquality-
Sr. No. Certification Purpose
1 EDQM Thiscertificationdenotesthattheproductisincompliance
(EuropeanDirectoratefor withtheEuropeanUnionpharmacopeia.
QualityofMedicine)
2 IFANCA/MUI This certification is required for Halal certification, which
certifiesthatthegelatinismanufacturedusingHalal-defined
processesandcanbeusedbytheMuslimpopulation.
3 KOSHER ThiscertifiesthattheJewishpopulationcanconsumeSterling's
gelatinandthattheinputsusedforgelatinproductionarein
accordance with the religious standards of the Jewish
community.
4 HACCP Thiscertifiesthemanufacturingprocesswiththehighestand
(HazardousAnalysisand mostconsistentqualityandsafetyofproduct.Alsoensuresthe
Critical-ControlPoint) availabilityoffallbackmeasuresincaseofunfortunateevents.
5 ISO9001 This certification denotes that the production process is in
accordance with standards laid down by the International
StandardsOrganizations.
6 ISO14001 Thiscertificationsignifiesthattheenvironmentmanagement
systemisincompliancewiththeEnvironmentalManagement
SystemStandard.
st31 Annual Report 2016-17
025
STERLING BIOTECH LIMITED
OPERATING AND FINANCIAL PERFORMANCE
Thehighlightsoffinancialperformanceduringtheyear2016-17areasunder:
l Thecompanyachievedaturnover(includingotherincome)of̀ 40,417Lacs.
l EBIDTAfromoperationsis̀ 1,655Lacs.
l Thefinancecostis̀ 36,980LacsleadingtoLossbeforetaxof̀ 61,680Lacs.
l Afterreducingthedeferredtax,thelossaftertaxis̀ 41,245Lacs.
l Networthasat31stMarch2017standsat̀ 127,609Lacs.
DEVELOPMENT IN HUMAN RESOURSES MANAGEMENT
Sterling believes that Human Resources always pay a very key role in the future growth of the company. It
recognizesemployeesasthemostvaluedasset.Byprovidingonjobandoffjobtraining,continuousdevelopment
and learning initiativesfor improvement inprofessionalcompetencies,themanagementaimstoachievehigh
standardsofhumanresourcedevelopment.
TheCompanyhasstrengthof801EmployeesasonBalancesheetdate.
WAY FORWARD
Wayforwardthecompanylooksforwardtoimproveinmarketingset-uptoreachtowiderrangeofcustomers
world-wise,diversifyproductportfolioofpharmaproductsthroughin-houseresearchandtocapitalizeonthe
increasingdemand.TheCompanyalsolooksforwardtotakecorrectiveactionsontheeffluentdischargeissueand
tighteningofqualitynormstomeettheglobalstandards,puttinginplacethecostcontrolmeasureswiththehelpof
betternegotiationwiththematerialsuppliers,improvementinandtighteningupofcostcontrolsystemforvarious
semivariableexpenses,etc.VariousstepsaretakenbytheCompanytoreduceitsfinanceCostandlookforwardto
reduceitsbankloans/debts.Thecombinedeffectofallthesefactorsareexpectedto befavorableforoverall
operationsoftheCompanyinthenextfewyears.
st31 Annual Report 2016-17
026
STERLING BIOTECH LIMITED
Nitin Sandesara ManagingDirector
(DIN:00255496)
Chetan SandesaraJt.ManagingDirector
(DIN:00255671)
ForandonbehalfoftheBoardofDirectors
Place :Mumbai
Date :May30,2017